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    Apr. 23, 2026

SEC and CFTC Agree to Align Regulatory Approaches

On March 11, 2026, the SEC and the CFTC entered into a Memorandum of Understanding (MOU) with the aim of bringing key enforcement policies and priorities into alignment; adopting consistent legal and financial terminologies; facilitating cooperation; and setting forth protocols for the interagency sharing and handling of nonpublic information. The MOU seeks to curb duplicative, onerous compliance burdens, for the benefit of both the regulators and the market entities that fall under their common jurisdiction – notably, through encouraging joint examination planning, joint examinations and the sharing of findings. The new MOU stands to have a far-reaching impact on enforcement and examinations. But it falls far short of rulemaking, and further clarifications are still needed, particularly around crypto regulation. This article summarizes the MOU, examines those parts likely to have a direct impact on fund managers, considers its timeline for full implementation and offers practical takeaways, with expert legal commentary. For analysis of the 2018 SEC-CFTC MOU, see “The Impact of the New SEC-CFTC Memorandum of Understanding on Fund Managers” (Aug. 9, 2018).

SEC Private Markets Roundtable: Valuation and Liquidity Concerns in Retailization of Private Markets (Part One of Two)

There is significant demand from retail investors for access to private markets, noted SEC Chair Paul Atkins in his opening remarks at the SEC’s Private Markets Roundtable held on March 4, 2026. The SEC seeks to open pathways to private markets with “appropriate investor protections,” he said. Brian Daly, director of the SEC Division of Investment Management, moderated a panel focused on “the twin concepts of valuation and liquidity,” which operate much differently in private markets than in public ones. The panelists examined differences in how public and private assets are valued, the implications of those differences and the liquidity issues associated with private markets. Both Atkins and Daly noted that, although they were speaking in their respective official capacities, their remarks did not necessarily reflect the views of the SEC, its other commissioners or other members of the SEC staff. This article, the first in a two-part series, synthesizes the insights from this panel. The second article will present the key takeaways from another panel focused on fund governance. See our two-part series on the retailization of private funds: “Incremental Changes Signal SEC Support” (Aug. 14, 2025); and “Practical Consequences” (Aug. 28, 2025).

Small Firms Must Be Ready to Comply With Amended Regulation S‑P

Regulation S‑P (Reg S‑P) requires investment advisers, broker-dealers and other covered firms to safeguard customer information. In June 2024, the SEC amended Reg S‑P to require covered firms to establish written policies and procedures for responding to unauthorized access to or use of customer information, including procedures for providing timely notice to affected customers. The amendments also broaden the scope of information covered and require firms to document their compliance with the updated rules. The amended Reg S‑P took effect for larger firms on December 3, 2025, and becomes effective for smaller managers on June 3, 2026, said Seward & Kissel partner Casey J. Jennings in a firm program on preparing for compliance with the amendments. Jennings, along with special counsel Erin Galipeau and attorney Katherine A. Agoglia, discussed the steps covered firms should take to ensure compliance with Reg S‑P, including incident response plans and third-party oversight. This article presents the key takeaways from the presentation. See “SEC Staff Discuss Regulation S‑P Amendments and Related Examination Processes” (Oct. 23, 2025).

Chair Atkins’ “Back to Basics” Vision for the SEC’s Division of Enforcement

Although every new administration brings a degree of change, developments at the SEC have been swift and significant since the end of Chair Gary Gensler’s tenure. Chair Paul S. Atkins has indicated that he intends to move away from “ad hoc enforcement” and toward a steadier, more principles-based approach that focuses on the SEC’s core missions. Ultimately, the new SEC will focus on what Atkins refers to as “back to basics” enforcement, which, for the private funds industry, means a focus on cases involving actual harm to investors, among other things. To explore how leadership changes and new policy directions are reshaping the efforts of the SEC’s Division of Enforcement (Enforcement), as well as the implications for those navigating the evolving regulatory environment, Gibson Dunn hosted a webinar, entitled “The New SEC: New Director and Enforcement.” The panel was moderated by Gibson Dunn partner David Woodcock – who, on April 8, 2026, was appointed director of Enforcement, effective May 4, 2026 – and featured his partners Jina L. Choi, Osman Nawaz, Tina Samanta and Mark K. Schonfeld. This article offers relevant takeaways from the webinar for private fund managers. For previous insights from Schonfeld, see “Conflicts From Managing Multiple Funds and Other Current Challenges to Effective Compliance at Hedge Funds” (Feb. 3, 2022).

The Core Benefits and Burdens of AI Use in Financial Services

Artificial intelligence (AI) is rapidly transforming many aspects of the economy, and financial services is no exception. Firms and regulators alike are turning to AI for a variety of reasons, including improving efficiency, reducing costs, enhancing accuracy and detecting misconduct. In remarks given at George Washington University, then CFTC Commissioner Kristin N. Johnson discussed the core benefits and burdens associated with the use of AI in financial services, as well as the May 2025 report to Congress by the U.S. Government Accountability Office (GAO Report) on the use and oversight of AI in financial services. This article discusses the key takeaways from her speech and the GAO Report. See “CFTC Advisory Cautions Firms to Remain Compliant When Deploying AI” (Aug. 14, 2025); and “CFTC’s Report Calls for Engagement and Development of AI Risk Management Frameworks” (Nov. 7, 2024).

Seward & Kissel Adds Derivatives Expert to New York Office

Jack Habert has joined Seward & Kissel as a partner in its investment management practice. Based in the New York office, Habert has deep expertise in the analysis, structuring and documentation of common and complex swaps and security-based swaps, in addition to various other types of financing transactions and their related collateral arrangements. For insights from other Seward & Kissel partners, see “Update on Appetite for Separately Managed Accounts and Key Terms” (Feb. 26, 2026); and “SEC No-Action Letter Allows Use of State Trust Companies for Custody of Crypto Assets” (Jan. 29, 2026).

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Trailblazing Women – Contributions, Achievements and Observations of Outstanding Leaders

To mark International Women’s Day, Law Report Group editors, along with our colleagues across ION Analytics’ products, interviewed outstanding women in the industries and jurisdictions we cover. In this article, Jill Abitbol, Robin Barton, Rorie Norton and Megan Zwiebel profile notable women in the data privacy, cybersecurity, AI, private funds and anti-corruption law fields, including (i) Paula Howell Anderson, (ii) Gwendolyn Lee Hassan, (iii) Audrey Koh, (iv) Stacy Feuer, (v) Heather Egan, (vi) Jeewon Serrato, (vii) Stephanie Breslow, (viii) Anne Choe, (ix) Heather Wyckoff, (x) Angie Batterson, (xi) Jacqueline Eaves, and (xii) C. Dabney O’Riordan.

Enjoy reading their inspiring remarks here.